Venezuela has been going through some tough times as oil prices continue to plummet and its economy continues to struggle. On Wednesday night, President Nicolas Maduro announced the country will raise fuel prices and devalue its currency, the latter having a profound impact on U.S. corporate earnings.
This was an "unbelievable devaluation" of the currency, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment Thursday.
The country is devaluing its currency from 6.3 bolivars per U.S. dollar to 10 bolivars per U.S. dollar.
This is very bad for U.S. companies operating within the country because the products they sell are worth drastically less when converted from bolivars to dollars.
Some of those affected include Procter & Gamble (PG) , Kimberly-Clark (KMB) , Colgate-Palmolive (CL) , Ford (F) and General Motors (GM) . However, Cramer noted there's one large company missing from that list: Clorox (CLX) .
Clorox bit the bullet in 2014, announcing it would exit Venezuela and cease its operations in the country. At the time, some investors argued that market was too big to abandon, Cramer said. In hindsight, the move couldn't have been smarter. Clorox is forward-looking, and has a great CEO in Benno Dorer leading the way.
Now, there are too many American companies that are trapped in Venezuela, refusing to walk away from a bad situation, Cramer concluded.